Tuesday, June 16, 2009

Elliott Wave provides a few trades

I was anticipating that there woudn't be much trading opportunity today, but we got several decent trades throughout the day. I only capitalized on my third trade after making silly mistakes on my first two.

The down move around 11:00am should have clued us in that an Elliott Wave was forming. The consolidation (blue dotted lines) provided a perfect place to take advantage of the 3rd wave. I missed this trade because I wimped out after the breakout. I just watched if fall as I wished I had moved more quickly.

The end of wave 4 provided another perfect doji setup for the 5th wave drop. I got into this trade late, and then held on after price made new lows hoping for lower prices. I stopped out at break-even as price came back and took out my stop.

The "abc" pattern after wave 5 provided a few other trades. I took advantage of one of those to book a decent profit for the day.

As I've made the transition from finding "setups" to understanding market "concepts" I've found more opportunities throughout the day. "Concept" trading has also allowed me to vary my position size based on factors "lining up" and providing opportunities with higher chances of success.

1 comment:

Anonymous said...

It is simply magnificent idea